Containerized sunflower oil export from Ukraine projected record-high in 2019/20

During the last two seasons(2018/19 and 2019/20), there has been a strong trend towards containerization of sunflower oil export shipments by sea, UkrAgroConsult analyst Maksym Kharchenko says.

According to him, the popularization of this export method is explained by the following advantages:

• the possibility of sending small shipments, practically at retail;
• door-to-door delivery of oil, preserving the quality and quantity of the cargo;
• no need for transshipment at the sea terminal.

"Now, ¾ of all container exports are in flexitanks(The flexitank, also called flexibag or flexitanque, is a flexible tank bag made of special polymer materials which is used for transportation of liquid cargoes in containers.). According to the UkrAgroConsult estimates, the export of sunflower oil in flexitanks by sea may grow to record figures by the end of the current season," the analyst notes.

In addition to export growth, according to the report, the geography of supplies has also expanded. The largest importers in the 2016/17 season accounted for 74% of the volume of sunflower oil in containers, now it is 51%, which shows an increase in geographical diversification of export flow.

"One should highlight China which has increased imports of Ukrainian sunflower oil in containers by 3x over the last 2 seasons," notes Maksym Kharchenko.

As a reminder, India, the main buyer of Ukrainian sunflower oil, plans to introduce an import duty on unrefined sunflower oil like it has been recently introduced for refined palm oil.